Solana (SOL) is facing heavy selling pressure, losing more than 57% of its value since January 13. While bulls are trying to regain momentum, the overall market sentiment has yet to show any signs of a strong recovery. As uncertainty continues to prevail, investors are watching closely for signs of a reversal or a potential breakout.
Is Solana Preparing for a Big Move?
Despite the bearish forecasts, some experts believe that Solana’s correction phase may be coming to an end. Analyst Ali Martinez pointed out that SOL is still consolidating in a wide range pattern, which typically signals increased volatility before a potential breakout. If historical patterns are followed, Solana could be poised for a big rally once market conditions stabilize.
Currently, SOL is hovering around a key price level, with traders focused on determining whether buyers can regain control. A breakout could take Solana higher, while continued weakness could drag the price lower.
Bearish Pressure Remains Weighing on Solana
After failing to reclaim its previous high, Solana is struggling to hold the $140 support. Analysts warn that if buyers fail to reestablish momentum, SOL could resume its downtrend.
The cryptocurrency market is also affected by macroeconomic factors, including the complicated developments in the trade war between the United States, Mexico, Canada, and China. In addition, former President Trump's executive order on the establishment of a Strategic Bitcoin Reserve does not seem to have created a positive effect on the market as expected.
While selling pressure remains dominant, several technical indicators suggest that Solana could be about to enter a period of high volatility. According to Martinez, SOL is currently consolidating within a right-angled ascending expansion pattern – a pattern that could lead to a major breakout in either direction.
If the price falls below $140, Solana could fall into a deeper correction. Conversely, if the bulls can push the price above key resistance levels, SOL could establish a solid recovery trend.
Solana Facing Key Resistance
Currently, Solana is trading around $139, struggling to reclaim the 200-day Moving Average (MA) and Exponential Moving Average (EMA) – key indicators located in the $184-186 resistance zone. If it fails to clear this level, SOL risks falling below $125.
Selling pressure continues to weigh on SOL, but if buyers can push the price back above $180, the market could shift to a more positive trend. A decisive breakout above this area would invalidate the downtrend and could push Solana higher.
Conclusion
Solana is at a critical juncture, with technical factors suggesting the possibility of a sharp move in the near term. Holding the $140 support level will determine whether SOL can stabilize and recover. In the meantime, traders remain vigilant in watching for key signals to determine the market’s next move.
